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  1. #1

    What is ResellerClub upto ?

    Directi started with web hosting
    then they got into domain registration.
    Then they offered their platform to others who wanted to be domain registrars.
    Then they ventured into online monitization of traffic.
    Then they started resellerclub for seperating their reseller business from regular business.

    Then they started webhosting.info for resellers to poarch on their competitors and die out.

    then they started Answerable.com (which failed miserably for bad support). But that was the venture to sell through thier reseller channel. Most waited in anticipation but found it to be quite expensive to make a decent profit.

    Then they launched BigRock.com / .in and hit the TV with commercials.

    What are they doing ? Its a clever strategy to kill reseller business and get directly to customer.

    They have started serverly undercutting and giving across PAN India discounts for domain and hosting through broadband internet service providers.

    Why the free service you may ask ?

    Well its to kill their resellers and capture the market.

    Well why would they do that? Why kill a large flock of golden goose giving golden eggs daily ?

    Well Bhavin Turakia and his team are marsterminds. They were unscrupulous from the 1st day and never cared for their resellers. Now that they have achieved volumes so resellers are dispensible.

    My forecast is Bhavin Turakia wants to come out with a public issue for his flagship company Directi in next 2 years and offload a huge chunk of shares on the Indian stock exchange and make a cool 2000 crores for himself.

    EBITA margins and business is not know since its still private.

    But the one to compare closet to Directi would be Net4 since they are somewhat in similar line of business.

    Net4 today is trading at Rs. 124 so if Bhavin Turakia offloads 100 crore shares at approx 120/share would make approx 12,000 crores for the company with public money with Bhaving pocketing approx 2000 to 3000 crores and wiping all the expenses he has incurred till date.

    So Directi / ResellerClub even offering free web hosting to kill their competitors will be a profitable business for them in time.

    Issue is if resellers should continue to stick to this company or move out in time.

  2. #2
    Join Date
    Aug 2002
    Location
    Bharat
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    4,722
    Your provider may or may not be able to poach on your clients depends on how you do your business.
    Vinsar.Net - Quality Web Hosting at Economical Price on USA & European Servers
    Offering domains, shared, reseller & VPS hosting.
    Reliable Domain Reseller Account Resell Domains with Confidence

  3. #3
    Wonder what will happen to their registrars?

  4. #4
    Join Date
    Jun 2010
    Location
    Modesto California
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    I've never been a big fan of reseller club, haven't they been known for spamming their clients, clients? I could have sworn I read something along those lines last year.
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  5. #5
    Quote Originally Posted by Zoom Active View Post
    Wonder what will happen to their registrars?
    After a close study of different whois parameters of registrars located quite many which use the Directi's Orderbox platform.

    Most on them are people in domain squatting business with hundreds and thousands of domains which they manage themselves and orderbox charges them few cents per domain plus yearly fee to comply with the strict ICANN rules.

    Why did these guys started their own registry ? well even after giving a hefty bank gaurantee to ICANN and yearly maintainance charges to Directi it still comes cheaper to be a registrar and be in full control of the squatted domains they rent out to website owners then to buy from Enom.

  6. #6
    Quote Originally Posted by Vinayak_Sharma View Post
    Your provider may or may not be able to poach on your clients depends on how you do your business.
    Found you use the Directi's orderbox system for Vinsar.net

    Its hard time today to retain clients because of unreasonable offers as free web hosting for 1 year from their bigrock.in site

    Most veteran players survived the .com bubble burst purely on their confidence to retain their clients but what will happen if registars start undermining their resellers ?

    Why i say this is to reach a level to come out with pubic issue Directi will severly undercut its prices further.

    We all know and read the rise of Mr. Dhirubhai Ambani and his Reliance Industries Empire but seldom people know the thousands of small businesses he knownly trampled and forced people in oblivion and commit sucide to build his empire.

    If my calculations are true you will soon find your domain registry setup for .in unviable due to increasing of charges by Directi very soon.

    What will you do then? switch back to the publicdomainregistry.com tag instead of your name in the registrar and pay the prices rest of us pay? The price is not the issue... you lose your independence and your badge as a registrar.

    I have nothing against you my friend. I would love to see your business flourish but I see the inevidible. hope others in this business see it too coming.

  7. #7
    Join Date
    Aug 2002
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    Bharat
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    Quote Originally Posted by Ravi_Subu View Post
    Found you use the Directi's orderbox system for Vinsar.net

    Its hard time today to retain clients because of unreasonable offers as free web hosting for 1 year from their bigrock.in site

    Most veteran players survived the .com bubble burst purely on their confidence to retain their clients but what will happen if registars start undermining their resellers ?
    As I said before, it depends on how you are doing your business.

    When answerable was launched same was said, and now bigrock is out there.

    If you are catering to clients looking for cheap services where they can get unlimited resources for almost nothing, you are bound to fail, unless you have loads of money or big CVs behind you to launch it on a grand scale.

    I started 10 years back when IT industry was going down hill, since then the number left me can be counted on one hand, and most of them left because they closed shop, not because someone with cheap services lured them.

    For a clients who are ready to pay 50 or 60+ K a year for services, cost of domain does not mean much, they want the services that these big (unlimited for nothing) companies can't even think of.

    Apart from that you can also look at godaddy, they are actively selling domains and other services on their main site while appointing resellers too, so does that mean their resellers will be out of business too because GD is directly selling to the market.

    Regarding .IN, first year registration promo has been running for quite long now and the renewal fee has been reduced too, so even if they switch back to original pricing, it is not going to hurt.
    Vinsar.Net - Quality Web Hosting at Economical Price on USA & European Servers
    Offering domains, shared, reseller & VPS hosting.
    Reliable Domain Reseller Account Resell Domains with Confidence

  8. #8
    Join Date
    Jul 2007
    Posts
    2,050
    There are some large hosting providers, but many small hosting providers who still get a fair share of the market depending on their size. Don't forget that companies like Hostgator have also entered the Indian market and so will Godaddy. It will not be a surprise if DirectI brings down prices further to compete with them. I think the so called small and medium sized hosting companies should aim at growth and join the league such large companies. I agree that I am also not a big hosting provider, but it is my service which will allow me to survive in the market as well as grow.
    Prashant T.

    Don't run after Success. Run after Excellence and Success will soon follow.

  9. #9
    Join Date
    Nov 2006
    Location
    Karachi, Pakistan
    Posts
    1,349
    The OP is complaining because directi is good at making money! Ravi read up about loss leading. Its an old and perfectly legitimate strategy for increasing sales. You draw customers in with low prices on certain products in the hope that they might buy more profitable services from you as well.

  10. #10
    Yes, loss leaders work quite well in the long run if you can afford it in the short run.

  11. #11
    Quote Originally Posted by Website themes View Post
    The OP is complaining because directi is good at making money! Ravi read up about loss leading. Its an old and perfectly legitimate strategy for increasing sales. You draw customers in with low prices on certain products in the hope that they might buy more profitable services from you as well.

    wrong , there are time when web is profitable for each company , now receller club is like python after taking meal python take rest for 1-2 month, so when RC wake up after eating tooo much from resellers they found that they are not making money in website/chat/etc except domain.

    but they wake up late same as nokia . now market don't need them for hosting.

    resellers are buying only domain from them no hosting . why? they provide very restricted plan, u cant register dll , no multiple domain facility ,noplugins etc.

    now they come to retail to retain themselves.

    they are closing products, there prices are high,
    they are loosing business same as nokia.

    there old cp is great but they f ucked by cpanel & plesk , whoever decided to make use of cpanel & plesk is real dumbo.

    people don't like cp they want easy to use working system which they provided before.

    however there service is excellent

  12. #12
    Join Date
    Jun 2005
    Posts
    3,448
    I had this concerns with them for sometime and this is why they lost so many hi value Resellers. And ended now with a bunchs of kids and wanna be registrars that can barely register 10 domains a year.

    Why would you want to be a reseller for them and give them 50,000 domains if your own customers can sign up directly with them for 100$ bucks. Its just risky. And they should had never started to sell hosting and other services because their Reseller just donīt care about them either.

    When they where DirectI it was not like that. They where like Enom, a customer had to invest at least 5000$ to get to your best pricing. And they had a very specific market target.

    To be honest they have no vision if you ask me.

    If im a Reseller with several clients, its not smart to undercut me and target Resellers directly when I spend 10,000$ to get their best pricing and others can spend a few bucks and get the same. Its just not fair and people know this. Even their own first Resellers know this, at start they are happy because of the nice price, but then they figure out they donīt have a single core advantage over anyone if everyone can do the same.

    At least Enom is still loyal to this and there is a big reason for this. Trust. You can trust Enom, they want you to succeed and they are not going to make it easier to your clients to sign up with them.

    Do you want 1,000 Reseller with 10,000 domains each or 10,000 resellers with 10 domains each?

    Well I would say the CEO in Reseller must be an idiot. Having more resellers will just increase their support costs and they will not make more profits out of it, because basically they are segmenting the market of their own clients.

    The most easier its to get their best pricing, the most people will sign up directly. If you think that was their idea from start, then they are doomed because there is null chances they can serve everyone needs.

    If that was true then 1and1 would now be the only and only hosting company and registrar in the world. Its the biggest, but just like that they are the biggest in the worlds worst support and yes, hosting and services is a very specific niche target.

    I think they just want to money quickly and I also see them as with no morals and loyalty. It would not surprise me if they use your client data to contact them directly and sell them services.

    Or they target Resellers or they target Retail, I see them not making up their mind which gives allot of insecurity and express no trust by their own Resellers.

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